BY COUNCILOR STAUBER:
WHEREAS, City Council Resolution No. 07-0773, adopted December 17, 2007, approved the FY 2008 action plan portion of the Duluth consolidated plan for housing and community development FY 2005-2009; and
WHEREAS, the secretary of HUD is authorized to make grants to cities and/or counties to finance local community development programs, approved in accordance with the provisions of Title I of said act, as well as grants under the Cranston-Gonzales National Affordable Housing Act of 1990, as amended, (the HOME program) and the Stewart B. McKinney Homeless Assistance Act of 1987, as amended (the emergency shelter grant - ESG - program).
NOW, THEREFORE, BE IT RESOLVED, that the proper city officials are hereby authorized to make and submit appropriate documentation to HUD for those projects and corresponding funding levels as set forth below:
2008 HOME PROGRAM - FUND 260, PROJECT CD08HM
PROJECT ACTIVITY PROJECTS AMOUNT
GN08 1736 Homeless rental asst. program (TBRA)- HRA $ 37,950
GNO8 1737 TBRA admin - HRA $ 3,800
CH08 2270 City Homes Ph. VIII - predevelopment - NCLT $ 20,000
CH08 1226 Predevelopment - Center City Housing Corp. $ 17,950
CH08 2271 Rehabilitation - resale - NCLT $225,000
CH08 1050 Supportive housing - AICHO $162,000
CH08 2272 MACV-Duluth housing - NCLT $141,600
GN08 AD01 Program administration $ 72,100
Homeowner development project $134,562
BE IT FURTHER RESOLVED, the following are hereby designated as the financial sources for the above program:
Year 2008 HOME grant $759,000
Year 2006 Program income $ 55,962
BE IT FURTHER RESOLVED, that the proper city officials are authorized to make the following transfers in prior year community development accounts:
Original Amount Revised
Budget of Change Budget
Bal. Sh. 2220 Lien repayments $ 55,962 -$ 55,962 -0-
$55,962 - Total amount reprogrammed
BE IT FURTHER RESOLVED, that the city of Duluth and its officials are authorized and directed to assume full responsibility for assuring that its community development program is carried out in full compliance with the provisions of the acts implementing the programs and all regulations of HUD issued pursuant thereto. This authorization shall also apply to existing programs with the city and HUD under the HUD CDBG, HOME and ESG programs.
BE IT FURTHER RESOLVED, that the appropriate city officials are authorized to execute the appropriate agreements with these agencies upon receipt of approval of HUD funds.
STATEMENT OF PURPOSE: This resolution reflects comments from organizations and citizens as related to funding for the Home Investment Partnerships Program (HOME). In addition to citizens, the Neighborhood Forums and the Community Development Committee (CD Committee) each played a role in the recommendations contained in the resolution. There was also a 30-day public comment period from November 2, 2007 to December 3, 2007, on the 2008 annual Action Plan, which includes recommended funding for the 2007 CDBG, HOME, and ESG programs. The CD Committee held a public hearing on December 4th to hear comments on the funding recommendations and then modified its initial amounts to reflect those comments. The final recommendations were approved on December 4, 2007, with the concurrence of the Community Development Manager.
Source of Funds:
$ 759,000 in new 2008 HUD HOME funds
55,962 in program income and reprogrammed funds
The resolution, in addition to authorizing application for grant funds and administration of same when received, also takes the following actions:
(a) Allocates funds by project for the 2008 HOME program.
(b) Authorizes contracts for the activities upon receipt of funding contract.
Contracts will have the appropriate addendums for affordability restrictions and recapture or resale provisions to ensure compliance with HUD regulations.
The following projects are recommended for funding in the FY 2008 HOME Program:
Project Name: Homeless (Tenant-Based) Rental Assistance Program - Duluth HRA
Project Description: Through the TBRA Program, HRA will provide housing vouchers to homeless families. The program functions under the guidelines of the Section 8 Housing Program.
Location: 222 East Second Street
Goal: 7 Households
Amount Recommended: $41,750
Project Name: City Homes Phase VIII - NCLT
Project Description: CHDO pre-development activities to prepare for the construction and/or rehabilitation of 9-12 affordable homes in scattered sites in the city of Duluth during FY 2009. NCLT will apply for 2009 HOME funds for the construction and/or rehabilitation of these housing units.
Location: 206 West Fourth Street
Goal: 1 Organization
Amount Recommended: $20,000
Project Name: Supportive Housing Pre-Development Project - Center City Housing Corp.
Project Description: CHDO pre-development activities to prepare for the acquisition and rehabilitation of up to 30 units of permanent supportive rental housing units during FY 2009.
Location: 105-1/2 West First Street
Goal: 1 Organization
Amount Recommended: $17,950
Project Name: Rehabilitation B Resale - NCLT
Project Description: Northern Communities Land Trust (NCLT) will create safe, decent, permanently affordable homeownership opportunities for low to moderate income households through the rehabilitation and resale of nine blighted single family homes in the City of Duluth.
Goal: 9 Housing Units
Amount Recommended: $225,000
Project Name: Supportive Housing - AICHO
Project Description: Gimaajii-Mino-Bimaadiziyaan (Gimaajii) will provide 29 units of affordable housing consisting of 0, 1, 2 and 3 bedroom apartments. This housing will serve low income persons who have been or are at risk of becoming homeless. The American Indian Community Housing Organization can be reached in their offices at 419 N. 1st Ave W., Duluth, MN, 55806.
Location: 202 West Second Street
Goal: 29 (13 HOME Units)
Amount Recommended: $162,000
Project Name: MACV-Duluth - Permanent Supportive Rental Housing - NCLT
Project Name: A CHDO project, Northern Communities Land Trust (NCLT) will acquire and rehab a building to provide 8 units of permanent supportive housing for homeless veterans. NCLT will serve as the CHDO developer of the project, and the Minnesota Assistance Council for Veterans (MACV) will own and operate the building. NCLT offices are located at 206 West 4th Street, Duluth, MN.
Location: To be determined
Goal: 8 HOME Units
Amount Recommended: $141,600
Project Name: Home Owner Development Program
Project Description: The funds may be utilized for housing construction 12, single-family rehab. 14A, or Multi-family rehab. 14B. These funds will be transferred from this program to individual projects through a City Council contract amendment. Performance measurements will be added in IDIS including the indicator amount. These funds may be added to a new program or activity that may be developed through an Request For Proposal process.
Location: 407 City Hall
Goal: To be determined
Amount Recommended: $134,562